Finding your dream home in Spain

Buying a property in Spain is probably one of the biggest purchases you are going to make in your lifetime. Therefore it’s important that we find a property you are 100% happy with. Here at Spanish Dream we take the time to carefully discuss your requirements up to the smallest detail and then go ahead and find you your dream home. If you are not familiar with the different regions of the Costa del Sol, we give you an overview and recommend different areas depending on your requirements. If you are unsure, we can always start by viewing a few different properties in different regions - for example a stylish townhouse in the bubbly Duquesa Port, a quiet cottage in Manilva, and a penthouse with gorgeous views in Manilva Gardens - until we find a location that clicks with you. After every property we see, we will evaluate how you liked the home and the location, so that we can learn more and more about your preferences and only show you the properties that interest you, until we find the perfect home for you.

To get the process started, just give us a call at 644 78 73 26 or drop us an email to

In the meanwhile, in order to find your ideal property, it’s important to know what budget you have available. To help you better estimate your budget, we created an overview of the different costs in purchasing a property in Spain.

One-time costs when buying a property in Spain

ITP - Impuesto de Transmisiones Patrimoniales

Property transfer tax, scaled at 8%, 9% and 10% depending on value of property. Payable by buyer provided the vendor is not a developer or not normally trading resale property (=> does not apply to new developments)

Property including flats, houses, villas, land, and business premises. Garages not belonging to an adjacent property or when a property has 2 or more.
Minimum Fiscal Value/Purchase PriceMinimum Fiscal Value/Purchase Price Transfer Tax
Up to €400,000Up to €30,0008%
From €400,000 to €700,000From €30,000 to €50,0009%
Over €700,000Over €50,00010%

It is extremely important to understand that this tax is cumulative. For example, if you buy a property in Spain for €800,000 the ITP will be calculated as follows:

-8% on the first €400,000 = €32,000

-9% on the next €300,000 = €27,000

-10% on the final €100,000 = 10,000

=>So the total tax due would be €69,000

There is a discount for first-time buyers under 35 years purchasing their permanent residence costing no more than €130,000. In this case the ITP rate is only 3.5%

Please note that all the values above are specific to Andalucia and will vary for other regions of Spain

VAT & stamp duty

This tax applies to cases where the vendor is a developer/promoter/trader of brand new properties/plots. It does NOT apply to resale properties. 10% VAT and 1.5% stamp duty – for villas or apartments, or garages that are annexed to an apartment. 21% VAT and 1.5% stamp duty – plots, commercial premises, commercial garage places. Applies to virtually all newly built commercial premises and newly urbanized plots.

Notary Fees

Notary fees depend on the complexity and will need to be paid for each ‘escritura’ to be signed. The fees are fixed by law. - The purchase contract – usually between 300 and 1,000 Euros depending on the price of the proeprty - Cancellation of existing mortgage (if applicable) – this would usually be paid by the vendor, since it is his mortgage that is being cancelled - Obtaining a new mortgage (if applicable)

Property registry inscription fees

This is usually between 200 and 500 Euros.

Extra costs rarely talked about

Paying for the property – cheque fees

The cost of cheques quite often comes as a shock to buyer as it can be quite high (1% commission). It therefore pays to "shop around" and collect offers from individual banks. Always negotiate and don't take the first offer for granted. The more you voice your outrage, the more likely the offer will change. It's quite common for banks to offer you special conditions under the requirement that you also purchase their property insurance. The best offer we found in spring 2018 was Cajamar with a small flat fee.

Please note that if you use a lawyer, it's quite common for the lawyer to issue the cheques. In this case you will simply transfer the funds to the lawyers' clients account, and the lawyer will issue all cheques. The cost of this is usually included in the lawyers' fees. Please check with your lawyers to make sure this is included.

Money conversion costs

Again, this is usually a commission and bank conversion charges vary, so once again it pays to shop around. A very interesting alternative to traditional bank rates is to use flat-fee online-conversion services like Transferwise

Lawyer (optional)

Although optional we strongly advise to get a lawyer to help you. Many large firms will charge you a fixed percentage (usually 1% + VAT), however, we know several lawyers that will be happy to help you for a fixed fee.

Surveyor’s fee (optional)

This is optional and the prices for a homebuyer’s survey and valuation usually vary between 500 and 2000 Euros

Other costs / recurring taxes

Annual property tax in Spain – IBI

IBI is payable annually and is calculated from the cadastral value of the land plus the value of the building assigned to the property. The tax rate is then set by the municipality (e.g. 0.6377% for Manilva for residential properties). Ask how much annual IBI fees are before purchasing the property. Both Manilva and Casares municipality offer a discount on IBI to residents (people registered on the padron).

Rubbish collection

Usually the rubbish collection fee is payable every 6 months. However, in Manilva the rubbish fees are already included in the IBI. So there is no rubbish collection fee.

Home Insurance

You will most probably want to insure your new home against all type of issues. Also, you might be offered a home insurance as a condition to obtain a special offer cheque rate by your bank. For a property valued at 200,000 a typical home insurance would cost around 250 Euros, and of course this varies by coverage, property value and company.

Spanish Non-resident tax / Income tax on properties for private use

Even if you did not rent out your property you still need to pay income tax on your property. This is calculated from the cadastral value of the property. The income tax is then based on 2% of the value of the property, of which you are then charged 19% assuming you are an EU resident (24% for residents of other countries). The tax is paid annually, and if you have not been the owner of the property for the entire year, you will need to pay the tax proportionally. If you rented out the property for part of the year, you will need to pay this tax only proportionally to the period that the property was not rented out.

Spanish Income tax on properties rented out

There is a rental tax which is paid quarterly, on the 20th of the month following the end of quarter (e.g. 20th of April for the first quarter). EU members are allowed to deduct allowed expenses directly related to the rental income as established in Ley del Impuesto sobre la Renta de Personas Físicas. Non-EU residents are not allowed to make any deductions. For EU residents the tax is 19% whereas

Note that the information provided above is abbreviated and is intended to serve only as a guide. It is subject to errors or omissions and it is strongly advised to get advice from a professional account, tax advisor and/or lawyer to assess your individual situation.

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